A new report by the World Bank titled: “Good Jobs for a New Generation: Delivering Quality Jobs for Young Nigerians after COVID-19,” has advocated investment in human capital; boosting job creation; and helping enterprises grow as ways of boosting the Nigerian economy.
The bank also cautioned that the continued under-investment in human capital may hinder Nigeria from harnessing the economic potential of its young population.
It pointed out that two economic crises in close succession – the 2016 oil price slump and the COVID-19 pandemic – had diminished Nigeria’s human capital stock, notably through declines in educational attainment.
In the report which was unveiled during a virtual interactive session with journalists, the World Bank assessed how much the COVID -19 pandemic affected jobs in Nigeria, and how the country could deliver quality jobs for its young population following the devastating effect of the pandemic.
According to the report, the COVID-19 crisis has underscored weaknesses in Nigeria’s labour market, noting however, that the country could leverage the crisis to protect human capital and foster good jobs for its young population.
It observed that before COVID-19, Nigeria’s youth already faced a daunting jobs challenge, adding that even without the pandemic, about 30.8 million Nigerian youth aged 15-29 (about 54.3 per cent of the 56.7 million people in that age group) were projected to have entered the labour market.
It stated: “Widespread informality and precarity in Nigeria’s labour market had not improved in the decade before COVID-19. From 2010 to 2019, the share of working-age Nigerians with jobs in household agriculture increased from 25.6 to 35.9 per cent. Precarious jobs offer less reliable paths out of poverty.
“To inform a new generation of labor-market policies, this brief marshals evidence on how Nigeria’s youth have responded to two recent economic shocks: the 2016 oil-price recession and the ongoing COVID-19 crisis.
“Youth responded to both crises by leaving school earlier to enter the labor market, thus increasing overall labor supply. Rising labor supply amid chronic job shortages have further widened precarity and informality in Nigeria’s labor market.”
The report posited that compared to the 2016 oil-price recession, COVID-19 negative labour-market effects was more concentrated among women and the poor.
It also noted that reversing education losses from COVID-19, particularly among girls, was a top priority.
Options proffered to address these included adding more hours to the school day, repeating the missed school period, and delivering lessons during school holidays.
The World Bank also stated that monitoring of education results is vital to ensure that losses are recouped.
According to the report, priorities to support job creation included promoting economic diversification away from oil and redirecting public spending towards productivity-enhancing infrastructure and pro-poor social protection.
